Govt amends rules governing corporate social responsibility

Ministry of Corporate Affairs has released a notification that shows that the government has amended rules governing corporate social responsibility (CSR).

– Under CSR rules, amounts remaining unspent in a financial year relating to an ongoing project and unutilized surplus arising from the CSR activities are required to be deposited by the company in a special bank account called 'Unspent Corporate Social Responsibility Account'.

– Projects or programs relating to those activities which are undertaken by the Board of directors of a company in ensuring the recommendation of the CSR Committee of the Board as per the declared CSR Policy of the Company along with the conditions that such policy will cover subjects specified in Schedule VII of the Act.

– Companies are allowed to undertake CSR activities through approved entities, such as funds or institutions established for charitable purposes, institutions established wholly for public religious/charitable purposes, universities or other educational institutions existing solely for educational purposes, and certain hospitals /other medical institutions.

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